SBP instructs banking industry to improve payment card acceptance in Pakistan

The State Bank of Pakistan (SBP) has instructed the banking industry to improve payment card acceptance to boost digital payments and promote financial inclusion.

  • According to the SBP, the topmost priority of the banks is to provide domestic payment and PakPay to customers.
  • The bank further stated, the merchant discount rate (MDR) will now be in the range of 1.5% to 2.5%.
  • The SBP has permitted the use of Pakistan Real Time Interbank Settlement Mechanism for the reimbursement of cheques.

payment

The State Bank of Pakistan (SBP) has instructed the banking industry to improve payment card acceptance to boost digital payments and promote financial inclusion.

According to the SBP, the topmost priority of the banks is to provide domestic payment and PakPay to customers.

PayPak is a Pakistani domestic payment scheme under the State Bank of Pakistan Vision 2020.

However, cards of international payment schemes like Visa, MasterCard, and Union Pay may be issued on the request of the customer, said the bank.

Merchant Discount Rate (MDR)

The bank further stated, the merchant discount rate (MDR) will now be in the range of 1.5% to 2.5%. Previously, the banks were permitted to charge any fee to the merchants.

The dissemination of revenues produced from a merchant among the card issuer, card machine deploying entity, and the payment scheme company has also been restructured to keep the enticements impartial among all the players, said the SBP.

Pakistan Real Time Interbank Settlement Mechanism (PRISM)

The State Bank of Pakistan has permitted the use of Pakistan Real Time Interbank Settlement Mechanism (PRISM) for the reimbursement of cheques. It would help to decrease the processing time for the clearing of payment mechanisms in the areas that are not easily reachable.


Also See:

To Encourage More People To Use Digital Channels, SBP Abolishes Fee On Online Payment Of Taxes

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